Announcement no. 1-2022
27 January 2022
BoligPortal, a subsidiary of North Media, has acquired 51% of the shares in Boligmanager ApS, a company developing property management software solutions on SaaS terms. The transaction marks an important step in BoligPortal’s transition to becoming a diversified home rentals platform.
Boligmanager has developed and launched a digital housing and property management system. The system enables landlords to manage, among other things, contracts, deposits, billings and payments, arrears, utility accounts, VAT, communication with tenants and bookkeeping at tenant/property level. This is a full-scale digital solution, and bookkeeping entries are integrated with e-economic and other online accounting software. The SaaS products are available as monthly subscriptions.
The founders of Boligmanager, Michael Melgaard Mærkedahl and Jonas Mørup Christensen, will stay on as co-owners and employees of the company. BoligPortal is investing a total of DKK 12 million to acquire the 51% ownership interest: DKK 4 million will be paid to the two founders, and BoligPortal will contribute DKK 8 million to Boligmanager for growth and upscaling purposes. BoligPortal will have a right to acquire, and the founders of Boligmanager will have a right to demand that BoligPortal acquire, the remaining shares in 2027 at a price to be determined by way of an earn-out model based on Boligmanager’s revenue and EBIT margin. The amount of the earn-out payment is expected to equal 1.5x Boligmanager’s revenue in the 2026 financial year, depending on its revenue and EBIT margin performance.
The takeover date is 1 February. The acquisition is expected to contribute to BoligPortal’s anticipated future growth.
“This deal will add a new business line to BoligPortal. It’s a perfect fit with our strategy to strengthen our existing businesses through acquisitions,” says Henrik Løvig, Executive Director of Acquisitions & Business Development at North Media.
Diversified home rentals platform
The BoligPortal digital marketplace was used to arrange more than 100,000 home rentals in 2021, making it the most important site in Denmark for connecting landlords and home seekers.
“Through Boligmanager, BoligPortal will be able to meet all the important needs of landlords and property managers. We can help landlords post vacancies, make contact with tenants, manage individual properties or portfolios, provide information on supply and demand from our unique data, and through our business partners we can offer power and internet services as well as insurance and financing arrangements,” explains BoligPortal’s CEO Anders Hyldborg.
The founders of Boligmanager have extensive experience in property management and software development. Founded in September 2020, the company has currently three employees, but the organisation will expand in 2022.
“After working on our product for the past two years and onboarding our first customers, we now look forward to becoming a part of BoligPortal. We have a vision of wanting to digitalise property management and to make it efficient and user-friendly. With BoligPortal’s strong organisation and extensive network on our side, we’ll be able to achieve that vision sooner,” say Michael Melgaard Mærkedahl and Jonas Mørup Christensen.
Annual report and guidance
North Media will publish its 2021 Annual Report along with guidance for 2022 on 9 February 2022.
The Boligmanager acquisition is expected to reduce BoligPortal’s 2022 EBIT by DKK 8 million. About half of the amount will consist of an earn-out provision and depreciation of the purchase price. Boligmanager’s 2022 revenue is expected to be relatively modest and will have no effect on BoligPortal’s overall revenue guidance.
For further information, please contact:
Kåre Wigh, Group Executive Director & CFO, tel. +45 25 65 21 45
Henrik Løvig, Executive Director, Acquisitions & Business Development, tel. +45 61 79 94 31
North Media develops and operates platforms for transactions that bring businesses and consumers together. These platforms help consumers find the right products, whether they are looking for groceries, rental housing, jobs or digital access management solutions. North Media has two core business areas: Last Mile: FK Distribution is Denmark’s leading distributor of leaflets and local newspapers; it runs the digital platform ‘minetilbud’ and provides logistics services. Digital Services: Three businesses with the potential for double-digit growth, rising earnings and scalability: BoligPortal is Denmark’s leading home rentals platform, offering services to both landlords and tenants. Ofir is Denmark’s most comprehensive jobs universe. Bekey delivers digital access solutions for locked stairwells and private homes for the use of homecare services and companies delivering parcels, groceries, meal services, etc.